Investment : The Need And Importance In Day To Day Life

Dec. 15, 2009 - PRLog -- Investment: Why is it so important?
Before trying to find out the answer to that question, let’s see a few situations which are not very uncommon in life.
Situation 1: I am 29 years old, and have decided to get married. I have been working hard for the last 6 years, but have no savings! My parents would definitely take care of my marriage expenses, but I should definitely be having a good amount of cash myself, if not completely independent!
Situation 2: My son/ daughter is 17 years old. He/ she is very good at his/ her studies and wants to pursue Engineering/ Medicine up to Post Graduation level at the least. Given today’s scenario, that should be very fair ambition. But I have only about 3 lakhs savings with me and I feel very embarrassed to tell him/ her to go for a study loan! What am I to do???
Situation 3: My daughter is 26 years old and I have a great proposal for her marriage. But I do not have enough savings to take care of her wedding expenses. She is of course independent, but is it not my responsibility???
Situation 4: I am retired. I had spent all my saving on my children’s education and marriage. I worked for a private organization and receive a paltry sum as pension. I and my wife are now totally dependent on our children. Thankfully they are too good and generous, but I feel embarrassed to go to them for each and every need of mine!
I sincerely pray to god, that nobody ever gets into a situation, remotely similar to the above.
But I also would like to point out that this kind of situation could have been easily tackled with some planning, when I was comfortable! Earning, healthy and strong! And I could have easily worked a little harder when it was feasible!
Well in all the above cases and many more, some sensible savings or investment would definitely been handy.
Apart from investing in Land, Gold, Equities, Fixed Deposits, etc, I can also invest in Systematic Investment Plans, where in the returns are good (not as high as equities but much, much more better than Fixed Deposits), is quite secure, and the investment is systematically spread over, to minimize risks and  maximize returns. The investment is managed by highly experienced professionals. The Investment can be liquidated as and when required, some cases there will be a lock in period, which specifies that the Investment cannot be liquidated for that time period, so be sure that your funds do not get locked in when investing in such plans.
Generally all Systematic Investment Plans give you excellent returns over a long period of time say about 7 to 10 years. And I will have to do a few things in a organized manner to maximize my returns. I follow a few DO’s and DONT’s and have listed a few below:
•   DO look at the credibility of the Company or the Organization and their promoters. Any new Companies promising abnormally high returns should definitely be ignored.
•   DO look at the financial standing and ethical values of the Company or the Organization. Higher the rating in this area better it is.
•   DO ask for the Fund / Investment performance. Though the past performance may not guarantee you the same in the future, it definitely is an indication.
•   Do give correct, exact and specific details in the application. Do not hide any facts whatsoever, for the fear of rejection.
•   Do look for the range of Funds or Investment options available in a specific plan.
•   Do look for flexibility in terms of Fund switching, transfers, etc.
•   Do look for charges, if any, for the above and other service charges that may be imposed on you.(It should not be difficult to find Investment Plans with free or free limited Fund Switches and Transfers)
•   Do ask for further details and clarifications if required. It is their (Company’s) duty to provide for all information as required by the customer.
•   Do make sure that the Agent or Advisor is friendly and will take care of future needs and requirements.
•   Do make sure to fill in the Applications, as and when required, on own.
•   Do read the entire Application, Agreement and Terms & Conditions before signing the document.
•   Do, as a general thumb rule, switch the funds to Equity funds when the Equity Markets are good and to Debt Funds when the Equity Markets are depreciating.
•   Do payments only by crossed cheque or demand draft payable to the Company only or through ECS.
•   Do nominate your loved ones and dear ones, so that in case of eventualities the benefits are passed on to the individual of your choice.
•   Do ask for special clauses available, like Investment Assignment- which will supersede all legal documents and the benefits paid to the individual to whom the assignment has been made, or MWP Act according to which the benefits will be payable only to my wife under any and every circumstances, etc)
•   Do intimate the Nominees or the Assignees, of the investment, so that they are aware and claim the benefits as applicable.
•   Do look for Insurance on uncertainties and eventualities, so that the Investment Plan continues irrespective of any event.
•   Do ask for IT benefits, if any.
•   Do pay your installments within the due date.
•   Do keep your Investment Certificates and all your receipts in a secure place.
•   Do not expect returns above 20 to 25% maximum. There are Funds performing a whopping 40%, but there are very, very few funds in that category, and 20% should be an ideal benchmark.
So, I would say Investment is very important and the need of the day, and would invest in Systematic Investment Plans, for my needs like Wealth Creation, Children’s Education Expenses, Retirement Benefits like decent Pension, etc. And of course I do need to plan on a case to case basis and spread my investment capacity to take care of all my needs.
And believe me anybody can plan their future needs through Systematic Investments and have a secure and a happy life.
If you should need any assistance or clarifications, please feel free to contact us. Please look for our contact details at the end of the article.
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We recommend physically challenged and disabled individuals also to come and join us. Due to nature of the business some restrictions may apply, but we shall do the best.
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Contact us at thesecurelife@gmail.com (or) Call us at 95662 77754 & 90920 87131.

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